KUALA LUMPUR, LBS Bina Group Bhd has formalised its partnership with Oriental Holdings Bhd to jointly develop a mixed-use project in Melaka, with the first phase carrying an estimated gross development value (GDV) of RM600 million.
According to an exchange filing on Monday, LBS Bina’s 80%-owned subsidiary, Business Park Development Sdn Bhd, has entered into joint venture (JV) agreements with Oriental Holdings’ wholly-owned subsidiary, Ultra Green Sdn Bhd, to undertake Phases 1A and 1B of the project, covering a total of 54.75 acres.
Under the JV terms, Ultra Green — the landowner — will be entitled to 17% of the RM600 million GDV, while the remainder will go to Business Park Development. The remaining 20% equity in Business Park Development is held by independent investor Au-Yang Liang Hin.
Phases 1A and 1B form part of a larger four-phase master development spanning 561 acres owned by Oriental Holdings’ subsidiaries. The site is located within the Straits of Melaka Waterfront Economic Zone, a state-led initiative aimed at promoting sustainable economic growth along Melaka’s coastline. The agreements mark a progression from the memorandum of understanding signed between LBS Bina and Oriental Holdings in May this year.
LBS Bina said the JV provides a strategic opportunity to strengthen its commercial portfolio, benefit from state-endorsed infrastructure initiatives, and capture long-term demand for industrial and commercial properties in the region. The partnership also complements its ongoing coastal reclamation and development project with the Melaka state government, which spans 735 acres.
Based on preliminary plans, Phases 1A and 1B will primarily feature commercial terrace units, with an estimated development cost of RM490 million. The project will be financed through a combination of internally generated funds and borrowings by Business Park Development.
The development period is expected to span five years, with completion targeted by 2032. On Monday, LBS Bina’s shares closed half a sen or 1.15% lower at 43 sen, valuing the group at RM679.51 million. Oriental Holdings’ shares were unchanged at RM7.05, giving it a market capitalisation of RM4.37 billion.
